Suppose Yon Sun Corporation's free cash flow during the just-ended (t = 0) year was $150 million, and FCF is expected to grow at a constant rate of 4% in the future. If the weighted average cost of capital is 13%, what is the firm's value of operations, in millions? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.
Value of operations=FCF1/(WACC-Growth Rate)
=(150*1.04)/(0.13-0.04)
which is equal to
=1733.33 million(Approx).
Suppose Yon Sun Corporation's free cash flow during the just-ended (t = 0) year was $150...
Suppose Yon Sun Corporation’s free cash flow during the just-ended year (t = 0) was $100 million, and FCF is expected to grow at a constant rate of 5% in the future. If the weighted average cost of capital is 15%, what is the firm’s value of operations, in millions?
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